TOPIC FOUR

MARKETING REQUIREMENTS FOR ENTREPRENEURS

Expected Learning Outcomes

By the end of the topic, the student will be able to:

1. Define entrepreneurial marketing and general marketing concept.

2. Explain the marketing mix (4 Ps of marketing).
3. Describe the marketing plan

Entrepreneurial marketing

Read the articles available at:

https://www.researchgate.net/publication/228907037_Entrepreneurial_marketing_Moving_beyo
nd_marketing_in_new_ventures

https://s3.amazonaws.com/academia.edu.documents/61178900/ISCBE2019_Conference_Procee
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Definition of marketing

Marketing is the process of identifying, anticipating and meeting consumer’s needs at a profit.
The ultimate goal of marketing is to facilitate exchange between an enterprise and its customers.
This exchange relationship exists as one party becomes willing to give something of value in
order to receive something of value.

Marketing has also been defined a s the process of conceiving an exchange and then
accomplishing the tasks necessary to deliver the goods or services in a manner that satisfies
customer and meets the business objective (i.e. profit maximization).

Marketing mix

These are decision areas that marketers (or entrepreneurs) can influence to attain marketing
objectives. They include decisions relating to the product, price, promotion, and place (or
distribution). They are also referred to as 4Ps of marketing (derived from the initial letter of each
component). The figure below shows the elements of each aspect of marketing mix. When
making decisions to attract and retain customers entrepreneurs should consider these elements.

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 Product Price Promotion Place

 Product variety  List price  Advertising  Channels

 Quality level  Discounts  Personal selling  Coverage

 Design  Allowances  Sales promotion  Locations

 Features  Payment period  Public relations  Transport

 Accessories  Credit terms  Publicity  Storage

 Packaging  Price level  Direct marketing  Intermediaries

 Warranties  Flexibility  Internet/web

 Product lines  Differentiation

 Brand name

 Services

 Sizes

 Returns

Product

The product element of the marketing mix involves the planning, designing and developing
the right type of the product or service to meet the customer needs. The main decisions involve-;

 The product style.

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 The product size.
 The product quality.
 The product design.
 The product range/ mix/line/width.
 The product volume.
 The product packaging.
 The brand name and label.
 The product warranties and after sale service.
 Product color etc.

What can be marketed?

According to Kotler and Keller (2006), marketers are involved in marketing ten types of entities:
goods, services, experiences, events, persons, places, properties, organizations, information and
ideas.

Price

Pricing the product is an important element of the marketing mix. Price is the value or sum of
money which is charged by the supplier of a product or service from the buyer. The financial
price is the measurement of value and has the following importance:

a) Economic value- because it relates to the generation of product revenue.

b) Profits- through price, profit, cost, and revenue elements are measurable.
c) Product quality – price gives indication of the product quality.
d) The psychological element- price has a psychological influence in the market i.e. high
prices co-relate to superiority.
e) Corporate goals-are achievable through pricing decisions especially in formulating marketing
strategies.
f) Meeting consumer expectations is measurable through price.

Place

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Place is also known as distribution of goods physically. This component of the marketing mix is
concerned with linking the seller and the buyer. It helps to ensure that the product is available
when and where it is needed by the consumer. It involves the elements of:

a) The channels of distribution (choice of market intermediaries).

b) The transport means.
c) The warehousing.
d) The routing of the product etc.

Promotions

A product promotion is the act of providing information about a product to its prospective
users in order to persuade them to buy, enjoy or choose the product. Any product promotional
message usually includes information which shows;

 That the product exists.

 That the product has ability to satisfy a particular want.
 The physical location where the product can be obtained or enjoyed.
 The qualities that the product can be obtained or enjoyed.
 The quantities that the product can be obtained.
 The times when the product can be obtained.
 The price of the product etc.

Factors influencing the promotion mix

Promotion mix constitutes various methods that entrepreneurs may use to promote their products
or services. Promotion mix includes advertising, personal selling, sales promotion, direct
marketing, public relations and publicity. The following are the factors that influence
promotional mix:

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1. Target market
As in most areas of marketing, decisions on promotional mix will be greatly influenced by the
audience or target market. The following variables affect the choice of a promotional method for
a particular market.
a) Geographical scope of the market.
Personal selling may be adequate in a small local market but as the market broadens
geographically, greater emphasis must be placed on advertising. The exception would be a firm
that sells to concentrated pockets of customers scattered around the country (e.g. selling to
industrial markets which are concentrated in only certain parts of the country). In this case
emphasis on personal selling may be feasible.

b) Type of customers.
Promotional strategy depends in part on what level of distribution channels the organization
hopes to influence. Final consumers and intermediaries sometimes buy the same product but they
require different promotion. In many situations, intermediaries may strongly affect a
manufacturer’s promotional strategy (e.g. large retail chains may refuse to stock a product unless
the manufacturers/entrepreneurs agrees to provide a certain amount of promotional support).

Another consideration is the variety of customers among target markets for a product. A market
with one type of customer will call for a different promotional mix than a market with many
types of customers. For example, a firm selling large power saws used exclusively by timber
manufacturers may rely on personal selling. In contrast, a company selling portable hand saws to
consumers and to construction firms will include a plenty of advertising in its mix. Personal
selling will be quite expensive in reaching the firm’s many customers.

a) Number of potential buyers. The total number of prospective buyers is another consideration.
The fewer the potential buyers, the more effective personal selling is compared to
advertising. This is the case with industrial markets.

2. Nature of the product

Several product attributes influence promotional strategy. The most important are:
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a) Unit value.
A product with low product value is usually relatively uncomplicated, involves little risk for the
buyer and must appeal to mass markets to survive. As a result, advertising would be the primary
promotional tool. In contrast, high unit value products are often complex and expensive. These
features suggest the need for personal selling.

b) Degree of customization.
If a product must be adapted to individual customer needs, personal selling is necessary. Thus,
you would expect to find an emphasis on personal selling for such things as suits, insurance
services etc. However, the benefits of most standardized products can be effectively
communicated in advertising.

c) Pre-sale and post-sale service.

Products that must be demonstrated, for which they are trade-ins, that require frequent servicing
to keep them in good working order lend themselves to personal selling. Typical examples
include; PC’s, fridges, lawn mowers, power saws and generators among others.

3. Stage of the product life cycle

Promotional strategies are influenced by a product’s life cycle stage.
a) At the introductory stage, the consumers are not aware of product features. They also do not
understand how these will benefit them. The role of marketing communication is to inform
and educate potential customers that the product exists, how it might be used and what
satisfying benefits it provides. Normally, heavy emphasis must be placed on personal selling.
Exhibits at trade shows are also used extensively in the promotion mix. A trade show gives a
new product broad exposure to many intermediaries. Manufacturers/entrepreneurs also rely
heavily on personal selling to attract intermediaries to handle a new product.

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b) In the growth stage, customers are aware of product benefits. The product is selling well and
intermediaries want to handle it. Manufacturers/entrepreneurs raise emphasis on advertising.
Intermediaries also share more in the total promotional effort.

c) In the maturity stage, competition intensifies and sales levels off. Advertising is used more to
persuade rather than to simply provide information. Stiff competition forces
sellers/entrepreneurs to devote larger sums to advertising and sales promotion.

d) In the decline stage, sales and profits are declining. New and better products are coming into
the market. All promotional efforts are reduced substantially. The focus becomes to remind
remaining customers. Advertising and sales promotion can be used at reduced levels.

4. Funds available
Regardless of what may be the most desirable promotional mix, the amount of money available
for promotion is the ultimate determinant of the mix. A business/entrepreneur with ample funds
can make more effective use of advertising than a firm with limited financial resources. Small or
financially weak companies are likely to rely on personal selling (e.g. use commission paid
salespeople), dealer displays or joint manufacturer/entrepreneur-retailer promotions. Lack of
money limits the options a firm has for its promotional effort. For instance, TV ads can carry a
particular promotional message to far more people and at a lower cost per person than can most
other media, a firm may have to rely on less expensive media such as yellow pages advertising
because it lacks the funds to take advantage of TV’s efficiency.

The importance of product promotion

i. To inform potential customers about the quality and other important details regarding a
product.
ii. To convince or persuade existing customers to continue buying the product and potential
customers to choose it.

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iii. To establish a business image or goodwill among the existing and prospective customers.
iv. To facilitate more sales revenue.

Methods of product promotion

There are six main ways of promoting products namely:

a) Advertising.
b) Personal selling.
c) Sales promotion.
d) Direct marketing.
e) Publicity.
f) Public relations.

a) Advertising

Advertising refers t o drawing attention to or describing a product in a public medium e.g.

newspapers, radio, television.

Reasons for Advertising

1. To introduce new products.

2. To stimulate desire for more quantities of the product.

3. To persuade the public to buy the product.

4. To explain new uses of a product.

5. To remind customers of the existing product.

6. To explain new use of a product.

7. To create recognition of a particular brand of products.

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8. To maintain the products name or slogan in public.

9. To prepare way for sales persons in selling. ‘

10. To remove any bias that customers may have developed about the product.

11. To inform customers of new prices, packaging changes or any other changes.

12. To supplement the efforts of salespersons.

13. To reach out for few markets.

Types of Advertising

Any advert may be classified on the basis of:

 What is emphasized?
 The nature of the message advertised.
 The geographical coverage.

But the main types include:

1. Product advertising – which basically promotes the sale of a particular brand of a product.
There is no mention of the manufacturer/entrepreneur and emphasis is on the
product.
2. Institutional advertising – tends to focus on creating a positive attitude on the
business/entrepreneur producing or providing the product / service. The emphasis is on the
institution.
3. Primary demand advertising – targets demand stimulation for a range of products without
mentioning a specific brand or manufacturer/entrepreneur. For instance health benefits of
milk.
4. Celebrity advertising – the advert uses a famous personality to endorse the use of a given
product – The aim is to use these people to attract attention.

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5. Corrective advertisement – seeks to correct errors or misleading claims made in an earlier
advertisement.

Advertising Media

An advertising media is the means through which an advertised message is conveyed to the
members of the public who are consumers. The following are some of types of media available
for advertising. Each off these methods has their own advantages and disadvantages.

 The press e.g. newspapers.

 Posters.
 Billboards.
 Brochures.
 Radio.
 Television.
 Neon signs etc.

Factors which determine choice of an advertising medium

a. T h e intended target group

The nature of the target group in terms of habits, customers age, etc. w ill determine
choice of the right medium.

b. The physical characteristics

The mediums physical characteristics i.e. visual aspects, color, movement’s etc.

c. M e d i a circulation

Where an advertiser aims to reach countrywide clientele, choice of a nationwide media is

necessary.

d. Cost of advertising

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Should be affordable and that they should be reasonable compared to the returns.

e. U r g e n c y of the advertisement

Urgent and quick adverts may require mediums such as Radio, TV etc.

Advantages of advertising

I. To the advertiser (or business enterprise)

i. It provides a business enterprise with t h e opportunity to inform the public on what they
offer.
ii. It stimulates demand for a product thereby increasing sales and the seller’s profits.
iii. Acts as a reminder to customers of the existing products.
iv. Helps sustain brand loyalty.
v. It quickens brand recognition.
vi. Enables quick access and purchasing of the product after knowledge of placement
and quantities.

II. T o the customer

i . I t increases customer’s awareness of a new product.

ii. Helps to indicate the variety of products available in the market thus facilitating choice.
iii. Leads to better quality products due to competition.
iv. Leads to increased quality being produced.

Disadvantages

I. To the advertiser

i. A costly method of promoting products.

ii. W h e r e offensive or erroneous may be negative.

iii. One can be sued where advert is misleading.

iv. C o m p e t i t i v e advertising may cause a seller to be pushed out of business.

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v. D i f f i c u l t y due to existence of several media.

II. T o the customer

i. Advertising costs are normally borne by the consumer.

ii. Misleading especially where there is consumer ignorance.
iii. Encourage impulse or irrational buying.
iv. Some adverts are irritating, anti-cultural and offensive.

b) Sales promotions

Sales promotion refers to the strategies and incentives which are aimed at promoting the
purchase of a given product. The sales promotion strategies are divided into two namely.

a) The strategies aimed at the customer directly. These include:

i. Direct mail i.e. cards, postcards etc.

ii. G i f t s and other premiums e.g. soap, toothbrushes.

iii. Discounts.

iv. D i s p l a y s e.g. supermarket.

v. Credit facilities.

vi. U s e of loss leader strategy – one good is sold cheap to attract customers.

vii. Use of free samples.

viii. After sale services.

b) The strategies aimed at the sales force

i. Dealer commissions – money given to dealers.

ii. Sales commissions – money given to salespeople.

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iii. Push money- to facilitate movement of the salesmen.

v. Sales and dealers training.

vi. P r o v i s i o n of point of sale displays.

Advantages of sales promotions

i. Sales promotion activities persuade and convince potential customers.

ii. Expand the market scope.
iii. Discounts reduce prices for consumers and credits stimulate a greater turnover.
iv. Attracts customers through use of price leaders.
v. Goodwill is built by after sales services and sample giving.
vi. Training and demonstrations remove fear of using a product.

Disadvantages of sales promotions

i. The sales promotional incentives are expensive e.g. free samples.

ii. Bad debts may arise from credit facilities.
iii. Time and money consuming for sales services.

c) Personal Selling

This is the method of promoting through the use of salespeople. This method is used under the
following circumstances:

i. Availability of adequate resources for the sales force.

ii. Easily accessible and concentrated markets.
iii. High unit value for the product.
iv. Products whose use needs demonstration.
v. Suitability of a product to individual need as opposed to general use.
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vi. Introduction of new products in the market.

Forms of personal selling

i) Field sales.

ii) Showroom selling.

iii) Shows, trade fairs and exhibitions.

Advantages of personal selling

i) Presents an opportunity to show the existing and potential customers what is available.

ii) It offers the prospective buyers an opportunity to see, examine, taste and ask questions
about a product and chance of comparing.

iii) The questions from prospective buyers are immediately answered.

iv) Immediate contacts are made between sellers and buyers for follow up.

v) Complements messages from other mediums e.g. advertising.

vi) Seller has opportunity to obtain information about the competing products and
promotional strategies.

Disadvantages

i. It is an expensive promotional method – especially where a wide coverage and overseas

exhibitions are involved.
ii. Energy and time are consumed on talks convincing and demonstrations.
iii. Requires cost controls of sales persons.
iv. Has limited coverage as it targets a limited group.

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d) Publicity

Refers to the free advertising whereby the desire for a product is created or boosted by
unpaid message in the mass-media (e.g. features). These features may be solicited for or
unsolicited for but remain entirely unpaid for by the business. – Or a news release sent to news
studio.

Advantages

i. Builds the sellers goodwill and image among existing and prospective customers.
ii. It involves no costs on the side of the seller.
iii. Has a large and widespread reach since it conveyed through media.
iv. Has a high credibility as it is reported independently.

Disadvantages

i. Unfavorable information may be released unknowingly released to the public.

ii. Information released is to the discretion of the media house.
iii. It is irregular and short–lived hence my not be effective.

e) Public Relations

The term public relations (PR) when used in product promotion refers to the process of
communicating information of an organization, product, policies and actions to specific
consumer groups or the public at large. This is done with the view of creating awareness and a
positive attitude towards the organization and the product.

It could also be done to correct mis-information or rehabilitate a spoilt image in order to get a
satisfied client. It aims at creating a favorable attitude towards the organization in order to
promote acceptance.

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Public Relations Tools

The following PR tools can be used:

i. Press release. To have information used by the press, it must be factual, true and of interest to
the media as well as the audience. The source of the press release can do certain things to
improve the likelihood that the news will be circulated.

ii. Telephone press conferences. Since reporters cannot always get to the press conference, the
organization should call them for coverage.

iii. In-studio media tours/satellite communication. The organization can provide a story and
chance for an interview from a central location such as a TV studio. This will save broadcast
journalists time and money by eliminating the need to travel.

iv. Video new releases (amateur video). This saves journalists time and money.

v. Targeted news stories. By targeting the PR message – i.e. selecting those messages that are of
interest to reporters and their target audiences - you spare journalists the need to read volume
of stories. The information should match the interest of readers of the particular medium.
For instance, financial institutions may issue press releases to business/trade media and to the
editor of the business section of a newspaper. Information on the release of a new reggae
album is interesting to a radio DJ than to the newscaster. A story about environmental
conservation will interest environmental columnist of a newspaper.

vi. Press conference. Though popular with politicians, organizations can also use press
conferences effectively. For it to be covered, the topic must be of major interest to the public.
Examples of issues that receive coverage include major breakthroughs like medical cures,
emergencies, catastrophes, Olympics, etc. Companies/entrepreneurs can hold press
conferences to announce introduction of new products, AIDS awareness, clean-up campaigns
etc.

vii. Exclusives. This refers to situations where PR efforts are distributed exclusively. One media
house is given exclusive rights to a story. The media given the right to exclusively carry the
story should have a wider reach. Giving exclusive right increases the probability that the

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 story will be carried by the media. Most media houses pride themselves in carrying an
exclusive story.

viii. Interviews. Here, PR efforts are done through interviews by journalists. In Kenya, we
have interview programs like On the Spot on NTV and Newsline on KTN.

ix. Community involvement. Companies/entrepreneurs enhance their images by participating in

community activities like providing food donations, helping IDPs, flood victims, sick people
and so on. They ensure that they invite media during such events for coverage.

x. Photo kits. These come in form of a business pictorial. For example, appointments,
particularly of senior staff.

xi. Supplements, particularly before a major event such as a graduation or Charter award for a
university.

xii. Speeches by senior managers, especially when there is a catastrophe or a major event such as
an Initial Public Offer (IPO).

xiii. Trade shows and corporate reports. The specific mode of distribution is determined
by the nature of the story, and the interest of the media and the firm’s publics.

Advantages

1. Effective in presenting information about the product and policies of an

organization.

2. A ddresses the desired target audience.

3. E ffective in correcting any misinformation.

Disadvantages

1. Expansive and therefore requires careful planning in both time and funds.

2. Impact takes time- hence is a long term strategy.

3. Its impact is difficult to gauge.

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f) Direct Marketing
Direct marketing refers to a system of marketing by which an organization/entrepreneur
communicates directly with target consumers to generate a response or transaction. This
response or transaction may take the form of an inquiry or a purchase or even a vote (Belch and
Belch, 1999). According to Kotler and Armstrong (2006) the major forms of direct marketing
include direct mail marketing (E-mail, fax mail, voice mail, postal mail etc.), telephone
marketing, face to face selling, catalogue marketing/selling, kiosk marketing, direct response
advertising and online marketing. According to Clow and Baack (2004), regardless of the tool
used, it is important to display a toll free number and web site address so that consumers are able
to contact the company/entrepreneur for additional information.

Advantages of Direct Marketing

a) Selective reach
Direct marketing provides the advertiser with the opportunity to reach a large number of
persons and more effective reach through the elimination or reduction of coverage wastage.
b) Segmentation capabilities
It is possible to purchase lists of recent product buyers, bank account holders, recent car
buyers or a variety of others. These may allow segmentation based on geographic area,
occupation, demographic and job titles etc.
c) Frequency
Depending on the medium utilized, it may be possible to build frequency levels. The program
vehicles used for TV advertising are usually some of the more inexpensive vehicles
available; thus, the cost of purchasing repeat times is not prohibitive.
d) Flexibility
Direct mail can take on a variety of creative forms. Direct mail pieces can be prepared in
such a way as to be very attractive and with high quality messages that attract the customer’s
attention.
e) Timing
While many media require long-range planning, direct mail can be much timelier. Direct
mail be can be put together very quickly and distributed to the target population.
f) Personalization
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 No other advertising media can provide the ability to personalize the message like direct
mail. Automobile owners can be mailed letters directly congratulating them on their new auto
purchase and offering them accessories.
g) Costs
Some direct marketing tools are cheaper when compared to advertising and sales promotion.
The ability of direct mail to specifically target the audience reduces and eliminates wasted
coverage, thus reducing cost.
h) Measures of effectiveness
No other medium can measure the effectiveness of communication or marketing efforts than
direct marketing.
i) Ability to target potential customers specifically
This is characteristic of direct mail and telephone marketing. Direct marketing offers
targeting precision or ability to target potential customers only.

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j) Invisible to competitors-Direct marketing activities are less noticeable to competitors
compared to other promotional activities. This is because they include telephone marketing,
use of emails, and direct mail.
k) Provides a new distribution channel and support for existing channels
Direct marketing provides a new distribution channel for the marketers (Betts and Yorke 1994).
According to Kotler and Armstrong (2006) direct marketing especially in its newest
transformation, Internet and e-commerce constitutes a new and complete model for doing
business.
l) Enables testing of markets, products, and services
Marketers can use direct marketing tools to test whether there is a market for their products
and services. For example they can drop free samples in potential consumer homes and later
check those consumer reactions to those products.
m) Convenience
From the comfort of their homes buyers can browse mail catalogues or company websites at
any time of the day and night.
n) Easy to use
Buyers can be able to use direct marketing methods from the comfort of their homes and
offices.
o) Private
Buyers can be able to use direct marketing methods in privacy.
p) Immediate and interactive
Buyers can interact with sellers by phone or seller’s website and decide the products, and
services they want and order them on the spot.
q) Wider reach
Direct marketing gives sellers’ access to buyers that they would otherwise not reach through
other channels. An example is the Internet that enables the sellers to reach many customers
across the world.

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Disadvantages of direct marketing
a) Image factors
Direct mail is often referred to as “junk” mail. This is because many people believe that the
unsolicited mail they receive is promoting junk, whereas others dislike the idea that they are
being solicited. Majority of people and companies throw away most of the unsolicited mail
they receive.
b) Accuracy
The accuracy of direct marketing approaches such as direct mail and telemarketing (vis-à-vis
target potential customers specifically) is directly related to the accuracy of the lists utilized.
c) Content support
Direct mail as direct marketing medium may not be able to effectively create the desired
mood that will lead to behavior the marketer is seeking. Others like direct response
advertising have their ability to create mood limited to broadcast and print methods.
d) Intrusive nature of the medium
Direct mail is intrusive in nature and many people may value their privacy. It may annoy or
offend customers. Most buyer dislike directing marketing activities like telephone calls that
come when the customer is taking a meal or late at night.
e) Proliferation of direct mail
Direct mail has increased in the recent past causing a lot of clutter.
f) Unfairness
Some direct marketing methods and messages try to exploit the impulsive nature of some
buyers. This may be regarded as unfair because some buyers may be unable to resist the
temptations from such messages.
g) Fraud
Some direct marketers pretend to be conducting research while in the real sense they are
trying to sell their products and services.
h) Customer dissatisfaction
This occurs as a result of late delivery or non-delivery, deceptive claims, items broken or
damaged in transit, the wrong being delivered and lack of information provided.
i) Maintaining a consistent image between different methods of marketing products. For
instance between retail store-based and direct marketing efforts.
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j) Increase in postal rates has made mailing of catalogs to be quite expensive.

Additional notes on factors which may influence an entrepreneur in choosing a promotional

method

1. Cost element of each method of promotion should be analyzed in order to suit financial
abilities.

2. Targeted audience is important in order to address an appropriate combination

method.

3. The nature of the product to be promoted i.e. those that may require demonstrations and
training etc.

4. Urgency of the promotional message.

5. Availability o f resources especially the mechanical physical and human resources to

implement a promotional mix.

6. The level of demand for the product. Where demand is high fewer promotional methods are
required.

7. The competitors’ promotional strategies.

8. Availability of media that is most accessible to its customers.

The marketing plan

Marketing plan is a written document that indicates how the firm plans to reach its marketing
objectives. It contains tactical guidelines for the marketing programs and financial allocations
over the planning period. The marketing plan is the most important output of the marketing
process. The marketing plan should be:-
- Customer oriented ;
- Competitor oriented;

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 - Better reasoned; and
- Realistic.
Marketing plan should draw more inputs from other functions and should be team developed.
Marketing plan procedures and content vary among companies. Most marketing plan cover one
year. They vary in length from under 5 to 50 pages. Some companies take marketing plans
seriously while others take them as a rough guide to action.

The nature and contents of a marketing plan

(i) Executive Summary and table of contents
The marketing plan should open with a brief summary of the main goals and recommendations.
The executive summary permits senior management to understand and appreciate the plan’s
major thrust (theme). The table of contents that outlines the rest of the plan should follow the
executive summary.
(ii) Current marketing situation
This section presents relevant background data on sales, costs, the market, competitors, channels
and factors in the macro environment. It answers questions such as: how is the market defined,
how big is it, and how fast is it growing? What are the relevant trends affecting the market?
What is the product offering and what are the critical issues affecting the company? This
information is used to carry out SWOT analysis.
In short it summarizes the results of the PESTLE (Political. Economic, Social-Cultural,
Technological, Legal and Ecological) external audit and provides background about markets and
customers, current marketing activities, previous results and competition.
(iii) SWOT analysis
It reviews internal strengths, and weaknesses, external opportunities and threats that can affect
marketing performance.
(iv) Segmentation, targeting and positioning
It outlines the segments to be targeted and indicate how the product, brand or organization will
be positioned for the selected customer segment (s).
(v) Objectives
The section outlines the plan’s major financial and marketing objectives, expressed in sales
volume, market share, profit and other relevant terms.
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 (vi) Marketing Strategy
It presents the broad approach that the plan will apply in providing value to achieve the
objectives that have been set. That is, the marketing strategies that should be used to achieve the
marketing/financial objectives.
(vii) Action Programs/Marketing programmes
The section specifies the actual marketing programs derived from the marketing strategy to be
used in achieving the business objectives. Each marketing strategy element should be expounded
to answer the following questions:-
- What will be done?
- When it will be done?
- Who will do it?
- How much it will cost?
- How will progress be measured?
(viii) Financial Projections/Financial plans (budgets)
This section outlines the budget. Action plans allow the manager to build a supporting budget.
On the revenue side, the budget shows the forecasted sales while on the expense side it shows the
expected costs of production, distribution and marketing, broken down into finer details. The
difference between revenues and sales is projected profit.
Once approved the budget becomes the basis for developing plans and schedules for material
procurement, product scheduling, employee recruitment and marketing operations.
(ix) Implementation controls.
This section outlines the controls for monitoring and adjusting implementation of the plan.
Usually the objectives and budget are outlined for each month or quarter. This enables the
management to review each period’s results and take corrective actions as needed. The
management may also include contingency plan specifying the actions to be taken if certain
environmental developments happen (e.g. price wars or strikes).
It indicates the organization, responsibilities and schedule for implementation; explain metrics
for monitoring and measuring progress towards objectives; and include contingency plans for
dealing with unexpected results and future scenarios.

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Summary of a marketing plan
Contents of a marketing plan
Marketing plan-Written document that indicates how the firm plans to reach its marketing
objectives.

1. Executive summary
 It describes briefly the plan’s objectives and main points.
2. Situational analysis/Current marketing situation
 Description of macro environment (political, economic, social, technological etc).
 Description of the product market and customers.
 Description of current marketing activities (product, price, promotion, distribution etc)
and previous results.
 Description of competitors (e.g. other universities offering similar programs).
3. SWOT analysis
 Describe the internal strengths that can affect marketing performance.
 Describe the internal weaknesses that can affect marketing performance.
 Describe the external opportunities that can affect marketing performance.
 Describe the external threats that can affect marketing performance.
NB-Should describe the key strengths and weaknesses within the institution and opportunities
and threats that the institution faces.

4. Segmentation, targeting and positioning

 Describe the segments to be targeted.
 Indicate how the product, brand or organization will be positioned for the selected
customer segment (s).
5. Marketing objectives
 Outline the marketing objectives.
They are expressed in sales volume, market share, profit and other relevant terms. For instance,
number of students per semester.

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6. Marketing strategies
 Describe the marketing strategies that should be used to achieve the marketing objectives.
7. Action programs/Marketing programmes
 Tactics and programs (action plan) - month by month actions that will help in
achievement of marketing objectives (dates, person responsible and a budget).
8. Financial projections/Financial plans (budgets)
 Outline projected costs, revenue and sales forecasts and expected profits.
9. Controls and implementation/Metrics and implementation controls
 How will the performance be measured? What areas need to be monitored to gauge
performance e.g. revenue (trimester and annual), Expenses (trimester and annual), student
satisfaction, new programs development etc
 How will the problems or performance variations be identified and corrected?
 How will the marketing department be organized (who has the overall responsibility for
marketing strategy and direction, how many people are required in the department etc)?
 What is the contingency plan for dealing with unexpected results and future scenarios?

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